When a Nebraska divorce becomes contested, it means the spouses can’t reach an agreement on major issues like child custody, spousal support, or how to divide their property. As a result, the court must step in to resolve those disputes and determine a fair distribution of the couple’s assets and debts.
How Nebraska Courts Divide Property
In a divorce, Nebraska courts follow a clear process for handling property division. The first step is identifying which assets and debts are subject to division. Nebraska law classifies property into two main categories:
- Marital Property: This includes assets and debts acquired during the marriage, regardless of whose name is on the title or account.
- Separate Property: This includes assets one spouse owned before the marriage or acquired by gift or inheritance during the marriage.
Once the marital property is identified, the court assigns a value to each asset and decides how to divide everything in a way that is equitable. A 50/50 split is not guaranteed; instead, the court considers what is fair based on the circumstances of the marriage. Assets commonly divided in a divorce include the family home, vehicles, retirement savings, investment accounts, business interests, and personal belongings such as furniture, jewelry, and household items. In addition to dividing assets, the court will allocate responsibility for marital debts, including mortgages, credit card balances, and personal loans as part of the overall property division.
Factors That May Influence Property Division in Nebraska
During a contested divorce, the court considers several factors when making decisions about property division, including:
- Length of the marriage
- Each spouse’s contributions (financial and non-financial)
- Earning capacity and education level
- Custody of children
- Health and age of each spouse
- Whether a spouse misused assets (i.e., spent or hid money)
These factors give the court a clearer understanding of the marriage as a whole. They help assess how each spouse contributed, what each person may need in the future, and whether either acted unfairly during the relationship. Rather than applying a one-size-fits-all formula, the court works to reach a property division outcome in the divorce that supports long-term financial stability for both spouses.
Strategies to Protect Your Assets During a Contested Divorce
While Nebraska law aims to be fair, property division in a contested divorce can feel unpredictable. Here are some ways to protect your interests:
1. Know What You Own
Start by creating a detailed list of all marital and separate property. Include bank accounts, real estate, cars, stocks, retirement accounts, and personal belongings. Accurate documentation is important in any property division dispute.
2. Gather Financial Records Early
In a contested divorce, one of the best strategies is having proper financial documentation. Collect tax returns, bank statements, loan documents, and any financial agreements or appraisals. These records help make sure that no assets are hidden or misrepresented.
3. Avoid Commingling Assets
If you’re still in the early stages of divorce, don’t mix separate and marital funds. For example, if you inherit money, keep it in a separate account. Commingled funds often become part of property division, even if they started as separate property.
4. Don’t Make Big Financial Moves
Avoid selling assets, making large purchases, or transferring property without your attorney’s guidance. These moves can backfire during a divorce, and may be seen as an attempt to manipulate property division.
5. Hire the Right Nebraska Divorce Attorney
A skilled Nebraska divorce attorney understands the nuances of Nebraska’s property division laws and can fight for your best interests during the divorce. Legal guidance is especially important when high-value assets, businesses, or financial matters are involved.
Common Challenges in Property Division
Hidden Assets
Sometimes one spouse may try to hide income or assets during a contested divorce. If you suspect this, your divorce attorney may work with a forensic accountant to uncover these assets.
Business Ownership
If either spouse owns a business, property division can become more complicated. The business may need to be valued by an expert, and the court will determine whether it’s considered a marital or separate asset, or a combination of both.
Retirement and Pensions
401(k)s, IRAs, and pensions are typically considered marital property, even if only one spouse contributed. A Nebraska divorce attorney can help you determine whether your retirement accounts, or a portion thereof, will be treated as marital or separate property during property division.
Work with a Nebraska Contested Divorce Attorney
At Nebraska Legal Group, we know how stressful a contested divorce and property division can be. Our experienced divorce and family law attorneys are here to provide the guidance, protection, and advocacy you need to navigate this challenging time. Contact us today to schedule a consultation and take the first step toward peace of mind and a new beginning.